In 20 minutes please A concrete and rock crusher for demolition work has been purchased for $57,000, and it has an estimated SV of $11,000 at the end oNext questionbe contracted over the next five years. Using the units of production depreciation method, what is the depreciation allowance in year four, and what is the BV at the end of year four?Ingineers have estimated that the following units of production (in m³ of crushed material) wD345EOYm³116,000224.00036,00017,0007,000The depreciation allowance in year four is $. (Round to the nearest dollar.)The BV at the end of year four is $. (Round to the nearest dollar.)

Explanation of Concept Depreciation is the amount which is to be reduced from value of assets to…

Answered: The depreciation allowance in year four…

The depreciation allowance in year four is $ (Round to the nearest dollar.) The BV at the end of year four is $. (Round to the nearest dollar.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

See similar textbooks

Related questions

Q: Beach Life Ltd. operates an online booking service restricted to beachfront properties around the…

A: Revenue recognition is the principle which states that revenue can be recognized when the…

Q: What effect do you think this inflation adjusted rate has on the price of an I-bond in comparison…

A: I-Bonds also known as inflation link saving bonds are the bonds with minimal risk category…

Q: Number Cost of Units per Unit Beginning inventory 130 $71 Purchased goods during the period 240 80…

A: Goods available for sale (in units)=Beginning inventory+Purchased goods during the period Goods…

Q: On Jan 2, 20X1, ABC Company acquired 3,000 12% 3-year P1,000 bonds of Z Corp. at P2,860,702.…

A: Amortized cost of bonds in the balance sheet at Dec 31, 20X1 will be proceeds received from bonds on…

Q: In its first year of operations, Maria Corp.earned 48,100 in service revenue.Of that amount, 8,200…

A: The net income is calculated as difference between revenue and expenses of the current. Under…

Q: From the following particulars relating to the business of Georg. Compute the value of goodwill on…

A: Goodwill is defined as an asset recorded in the books when a business successfully acquires the…

Q: The entry to record the application of Factory Overhead to Jobs in a Job Order Cost system would be:…

A: Journal entries are the basic method of recording transactions. The job cost is used for measuring…

Q: Micellar Company had the following available information as of December 31, 2021: Preferred Share…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Classify each item by type of business activity- operating, investing, or financing. Also indicate…

A: Statement of cash flow (CFS) refers to a financial statement of the company which shows the flows of…

Q: Beginning inventory 130 $71 Purchased goods during the period 240 80 Sold goods during the period 70…

A: Formula used: Goods available for sale in dollars = Goods available for sale in units x Price per…

Q: P37,200 OU Balance per bank statement, 3/31/04 10,300 47,500 Add: Deposit in transit 12,600 Less:…

A: Answer - Computation of Cash Balance as per Books at April 30, 2004 : Particulars Amount Amt…

Q: If Gardner Corporation plans to sell 520,000 units during next year, the number of units it would…

A: Under production budget, we calculate the number of units to be produced during the budgeted period.…

Q: lden Corporation has sufficient current E&P. It distributes a land (FMV = $3,000, basis = $4,000) to…

A: Requirement: In the given question it is required to calculate gain or loss, dividend income and…

Q: The following extracts from the DEF Co budget are available. Year ended 30 June 2019 Sales…

A: Cash receipts value from customers can be calculated by adding up sales to opening account…

Q: related to cash? What are the most important assertions related to cash? How will auditors test…

A: Answer Audit of Cash Assertion to be examined 1. Existence :- To establish the existence of cash…

Q: ractor Division makes a part that it sells to customers outside of the company. Data concerning this…

A: $26…

Q: Units of concrete panels produced and sold Sellling price Direct Materials (volume of concrete)…

A: Operating Income: Operating income is an amount determined from the income and expense statement. It…

Q: Illustration. The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his…

A: To record the investment by the partners in the partnership firm, the assets contributed by the…

Q: Kwaku Appiah has been working for a textile manufacturing company for the past 25 years. At his…

A: The following sales receipt and purchase payment schedule is made assuming the sales are evenly…

Q: Only need the answer to number 4

A: The total cost of production of a good comprises of the total fixed cost of production and the total…

Q: Learning Task 3: Prepare Adjusting Entries in a two-column journal: 1. On June 30, 2018, Mr. De…

A: As per the matching principle, the expenses of a year i.e. accounting period shall be matched with…

Q: On Dec 31, 2020, ABC Corp issued 4-year, 7% bonds with $3,000,000 as par value. ABC Corp. received…

A: The bonds are issued at premium means that carrying value of bonds payable is more than the face…

Q: Summit Company has provided the following inventory balances and manufacturing cost data for the…

A: The question is related to Cost Sheet. The Purchase will be calculated with the help of following…

Q: circumstances under which a member can lose their limited liability in a close corporation

A: A corporation other than a public corporation, which does not exceed the number of shareholders…

Q: Which of the following statement is CORRECT regarding Job order cost accounting system? O Under the…

A: In the context of the given question, we are required to find the correct option from the available…

Q: Logano Driving School's 2017 balance sheet showed net fixed assets of $2.4 million, and the 2018…

A: Net capital spending represents the amount recompensed by an entity in order to maintain its fixed…

Q: March 2021 1 The owner, Gina, invested the following: filing cabinets and fixtures- 15,000; cash,…

A: In this question, we are required to prepare Trial Balance, Income Statement and Balance sheet of…

Q: Depreciation OMR 12000 Net Profit OMR 148000 The following accounts decreased during 2020: Accounts…

A: Introduction: Statement of Operating activities: Cash transactions of running day to day business…

Q: 1. Determine the total incremental cost of making 70,000 units of RX5. 2. Determine the total…

A: Incremental Cost is the cost which is incurred due to the production of additional units of the…

Q: Calculate the lowest acceptable transfer price for the seller (Division A) ?

A: Calculation of contribution per unit of Division A Particulars Amount Selling price per unit 76…

Q: wing information is provided for the first month of operations for Legal Services Inc.: A. The…

A: Explanation of Concept Journal entries: Journal entries are the accounting treatment done in the…

Q: Beau Dawson and Willow McDonald formed a partnership, investing $276,000 and $92,000, respectively.…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: On January 1, 2013, Lindsay Owens opened Picture Perfect, a small retail store that sells picture…

A: The income statement is one of the financial statements of the business which tells about the…

Q: Required

A: The total cost of production of a good comprises of the total fixed cost of production and the total…

Q: On 31 July the Pass book of BAC LLC reported balance of RO 8750. Cheques deposited in bank awaiting…

A: Introduction: BRS: BRS stands for Bank Reconciliation statement. To reconcile the differences…

Q: what you consider as effective board pract

A: We consider Effective Board practices as; A diverse board of directors with diverse members…

Q: Alternative 6% for 1 year 1 Alternative 2 Alternative 3 5% for 6 month: 5.25% for 3 months, then 7%…

A: ALTERNATIVE -1 Calculation of Maturity amount of Alternative -1 Maturity amount = Amount invested +…

Q: Learning Task 2: Journalize the entries for the following adjustments on December 31, the ed of the…

A: Adjusting entries are the one which are prepared at the year-end for the transactions which are left…

Q: January 1, 2013 2-year-old Cattle 12,000 New Born Cattle 4,000 December 31, 2013 2-year old cattle…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: How should exchange gains or losses resulting from foreign currency transactions be accounted for?…

A: Lets understand the basics. Foreign currency transaction are transaction which not made in home…

Q: Question 9 of 40 A(n) is a refund of a portion of, but not all of, the sales price of an item. OA.…

A: Lets understand the basics. When person make a sale then for attracting more purchase for buyer or…

Q: For each asset, calculate its accumulated depreciation and carrying amount at December 31, 2021.…

A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…

Q: What was the change in R&D cost from the productivity component? (100,000) F (100,000) U (40,000) F…

A: What was the change in R&D cost from the productivity component Correct answer = (b) (100,000) U…

Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of…

A: Factory overhead means all type of indirect costs being incurred on production and manufacturing of…

Q: Mountain Dental Services is a specialized dental practice whose only service is filling cavities.…

A: High-low method is used in costing to segregate fixed and variable costs. Following formula is used…

Q: Exercise 2-19A Record transactions, post to T-accounts, and prepare a trial balance (LO2-4, 2-5,…

A: Journal entries are the foremost reporting of business transactions in the books. These are posted…

Q: QualCore Company began operations on January 1, Year 1, and uses IFRS to prepare its financial…

A: Introduction: IFRS: The International Financial Reporting Rules (IFRS) are a collection of…

Q: Amazing Company enjoys a profitable operation for its past ten years of existence. The company…

A: The question ask to calculate total liability related to the bonus transactions under declared…

Q: Fore Farms reported a pretax operating loss of $120 million for financial reporting purposes in…

A: Introduction: The income statement of a firm documents the company's success over a specific time…

Q: An attorney performs services of $1,100 for a client and receives $400 cash, with the remainder on…

A: Journal entries are the primary reporting in the books. These are recorded in the books to maintain…

Question

In 20 minutes please

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.
Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.